Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1887-07-09
EXTRAORDINARY EXPENSES. =
Attorney John r. Usher. Of the Union Pa.
etno. Explsins Why Certain Statesmen
Were Paid for Certain Services for His
Company.

Company.
ATTORNEY USHER ON THE STAND.
KANSAS CRY, July s.-The Pacific Rail-
way Commission to-day examined at great
length. Judge John P. Usher, attorney for
the Kansas Pacific Railroad. now one OF
the attorneys for the Union Pacific, and
the man who drew the mortgage consoli-
dating the Union and Kansas Pacific.
Judge Usher narrated the story of the
Kansas Pacific from it's inception. Com
missioner Anderson interrogated the wit
ness with regard to certificates of stock OF
the Leavenworth, Pawnee & Western road
which Gen. Stone had said had been dis
tribute6 in large quantities to persons
supposed to have influence with members
of Congress. Judge Usher denied positively
that the certificate attributed 70 him had
evef been in fact delivered to him. He
characterized the certifcation as previous,
and said he had not learned of their OK.
istence till after the passage of the act OF
July 1, 1862. He had no knowledge OF any
attempt to
INFLUENCE MEMBERS OF CONGRESS
The witness decribed at great length the
progress of the Kansas Pacific up to 1878
when vigorous efforts were made by the
company to acquire by legislation the right
OF through freight over the line OF the Union
Pacific by compelling the latter company
to accept and deliver through freight at
Cheyenne. The witness and Others went to
Washington in the winter OF 1873. There
he met Jay Gould, who suggested that the
Kansas Pacific stockholders sell their stock
to him (Gould). All Kansas Pacific peo-
pie agreed to sell at 12A per cent, and the
bargain was concluded in the spring OF
1879. A peculiar feature of the mortgage
was q special provision by which the
securities of Jay Gould and Russell Sage
were exempted from the Communication
rates and were entitled to be retired at the
specified sum of
$3,4OO,OOO IN BONDS.
The amount in bonds to which their secu-
rites would be entitled Communication
rates. provided for either holders, was
81, $50, 900. Judge Usher could not remem-
ber why this provision had been inserted,
the only Instructions he had received
being from Jay Gould personally. The
witness was then examined with regard to
the number of items found ou the Kansas
Pacific books showing payment for legal
expenses, among them 81 500 to VIM. E.
Chandler in 1874 in assisting to get a pro
rate bill by Congress-, an item of I, 5000 for
T EXTRAORDINARY ExPENs
ut Topeka by Attorney Dennis, $4.749 to
John B. Henderson,; of st. Louis; S745
paid Horace White; 1900 to R. M. Shoe
maker; $11, 900 paid R. G.. Ingersoll, OF
Washington, for assisting in the passage OF
bills. Judge Usher sa i'd he had never had
anything to do with such bills. The Dennis
item had no doubt been expended in enter
tanning members of the Legislature at
Topeka. VIM. E. Chandler's bill be con.
sidered soliciting business, explaining to
members OF Congress the necessity for bills
becoming laws, etc. John B. Henderson e
bill was for legal argument. Horace White e
was for preparing and delivering speech
before the Congressional Committee on
prorate bill. OF other bills
HE KNEW NOTHING.
Judge Usher criticised the officials OF the
War and Postofflce Departments for not
giving the Union Pacific a larger share oi
the Government transportation business
As to the debt, the witness thought if the
Government would take it's securities and
| cut the interest in two. making it TX pei
cent, and the first mortgage bondhoIders
would do likewise, the road would pay its
debt, and that plan would enable Kansas
and the Western States to take an i'm.
| mense stride forward, as they could then
have cheaper freight rates. The principal
office of the company should be removed
to the West, where it's interests are To-
Gated. The Commission makes persona
examination of the Kansas Central road
next then goes to Denver.